Bitcoin Resumes Downward Correction as It Fluctuates Between Levels $44,850 and $47,200
The price of Bitcoin (BTC) has been falling down, hitting the low of $43,220. However, the bulls bought the slump and pushed the BTC price to a high of $46,350.
Over the past 48 hours, the BTC price has been volatile. Initially, it fluctuated between the levels of $47,200 and $44,850. Now, BTC/USD is consolidating in the middle of the price range.
That is, the cryptocurrency is consolidating above the support at $45,000, while the price movement is characterized by small indecisive candlesticks called Doji and Spinning tops. These candlesticks indicate that buyers and sellers are undecided about Bitcoin's direction. Bitcoin will reenter the trend when buyers or sellers take advantage to break through the fluctuation ranges. On the daily chart, the downtrend will resume when the BTC price drops below the 50-day line SMA. The cryptocurrency is trading at $46,129 at the time of writing.
Bitcoin indicator reading
BTC price has fallen to the 46 level on the Relative Strength Index for period 14. Bitcoin is trading in the downtrend zone and is below the 50 midline. The cryptocurrency is in a position to fall to the downside. Bitcoin is below the 50% range of the daily stochastic. The market is in a bearish momentum. The 21-day and 50-day SMAs are sloping upwards, indicating the previous uptrend.
Major Resistance Levels - $65,000 and $70,000
Major Support Levels - $40,000 and $35,000
What is the next direction for BTC/USD?
BTC/USD is in a range-bound move as the price fluctuates between the $44,850 and $47,200 levels. If the bulls break through resistance at $47,200, it would be a sign of resumption of the uptrend. If the bears break below support at $44,850, the downtrend will resume. In the meantime, Bitcoin is consolidating in the middle of the price range while trading marginally.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
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